On 17 January 1941 the passenger and cargo liner was about 35 nautical miles (65 km) north of Rockall in heavy seas when U-96 hit her amidships with one torpedo, causing her to stop. She did not sink so U-96 fired two more torpedoes hitting the liner in the stern and again amidships. She had launched four lifeboats but still had people on deck when U-96 surfaced and opened fire on her with her 88 mm deck gun. The submarine fired 28 incendiary shells about 15 of which hit the liner and started small fires aboard. These soon went out and U-96 hit her with a fourth torpedo which exploded in her forepart. Within three minutes Almeda Star sank by her bow. When rescue ships arrived no trace of the ship or the 360 aboard was found.